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Contribution of NCB in Saudi Arabia Development

   

Added on  2021-04-21

14 Pages2572 Words89 Views
FINANCIALINSTITUTIONSNational Commercial Bank
Contribution of NCB in Saudi Arabia Development_1
FINANCIAL INSTITUTIONS1Table of ContentsIntroduction................................................................................................................................2Overview of National Commercial Bank...............................................................................2Products and Services offered by National Commercial Bank..............................................2Competitor Analysis...............................................................................................................4Contribution of NCB in Saudi Arabia Development.............................................................5Conclusion..................................................................................................................................6References..................................................................................................................................7Appendix....................................................................................................................................9
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FINANCIAL INSTITUTIONS2IntroductionFinancial institutes with a license to accept deposits and offer loans are known as Bank(Wallach & Tattersall, 2011). It also offers financial services, like safe deposit boxes,currency exchange, and wealth management. Investments banks and commercial/retail banksare the two categories of banks (Betz, 2013). The purpose of this report is to provide anoverview of National Commercial bank of Saudi Arabia, its products and services and theircontribution towards the profitability of the bank. Along with this report will perform thecompetitor analysis and its comparison with other banks. Further, it will provide a briefdiscussion of its contribution towards the development of Saudi Arabia. Overview of National Commercial BankThe National Commercial Bank (NCB) is also called as AlAhli Bank. In terms of asset, it isthe second largest bank in the Arab world and the initiator of the Islamic banking. The NCBis the Saudi’s first bank receives its license and the largest in the Kingdom and a principalfinancial institution in the area established by Abdallah Mousa Kaki (National CommercialBank, 2018). The bank started its business in the name of “The National Commercial bank”succeeding the Royal Decree on 20 Rabi Thani 1373H. With the help of (PIF) i.e. Ministry ofFinance’s Public Investment Fund in 1999 government acquired a maximum number of bankholding. 90.7% of NCB Capital is owned by the National Commercial Bank, its investmentsupports the Leading bank of investment in the Kingdom and possesses 67.03% of TürkiyeFinans Katılım Bankası (TFKB), Turkey’s top participation bank (Alshetwi, 2013).
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FINANCIAL INSTITUTIONS3Products and Services offered by National Commercial BankThe National Commercial Bank (NCB) offers several banking services and products. Itprovides banking products based on non-special commission in obedience to Shariah rules,which are permitted and managed by a self-governing Shariah Board (Bloomberg, 2018).TheBank activates through Capital Market, Retail, Treasury, International and Corporatesegments. The Retail segment offers services of a bank, comprising current accounts and lending, aswell as products in obedience to Shariah rules to entities and customers of private banking.The corporate segment provides several financing and conventional credit-related products tocompanies, large, medium and small sized establishments. Treasury segment offers a variety of corresponding and treasury banking services andproducts including foreign exchange and money market; carries out trading and investmentactivities; and handles credit risks, market, and liquidity associated with the investments.The capital Market segment provides asset management, shares and brokerage, investmentbanking and wealth management services. International segment offers services of the bank outside the boundary of Saudi Arabia. Italso promotes and distributes products of Islamic insurance, offers recruitment services andruns a private equity fund.The existence of Bank- The National Commercial Bank exists because of its best servicesoffered to the customers. It maintains good relations with the customers and businessorganizations operating in the country. Liquidity of Bank- Liquidity of bank is the capability of a bank in retaining sufficient fundsin order to meet its maturing requirements. How effortlessly bank can convert its asset into
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